Rosebank Industries (ROSE) Trading update summary

Strategic actions and integration

• Strategic plan agreed with ECI management to align with shareholder returns.

• 24-month restructuring program to reduce ECI sites by over a quarter, costing $80 million and expected to uplift adjusted operating profit by $30 million over two years.

• Central cost reductions underway, including closure of duplicate ECI head office.

• Integration of finance systems and rollout of Group reporting system at all ECI sites.

• Full review of ECI balance sheet completed with no surprises identified.

Financial performance and outlook

• Highly confident of achieving full year 2025 expectations for ECI.

• ECI revenue in the period met expectations; net new business wins significantly ahead of last year.

• Adjusted operating margin for ECI was 15.7%, up 2.2 percentage points year-on-year.

• Net debt expected to be below $550 million, with leverage at year-end around 2.5x adjusted EBITDA.

• Outlook remains positive with further operating margin progress expected in 2026.

Sector performance and operational highlights

• Electrification and Industrial revenue flat, but adjusted operating margin up 1.9 percentage points.

• Appliance and HVAC revenue up 2%, with adjusted operating margin up 3.0 percentage points.

• Exit from costly working capital arrangements exceeding $100 million.

• Full recovery of all tariffs incurred, invoiced and paid.

• Active pursuit of North American bolt-on acquisition opportunities for ECI.